Thriving (Not Just Surviving) in the Face of Big Labor's Assault on Healthcare

www.IHStrategies.com
Thriving (Not Just Surviving)
in the Face of Big Labor’s
Assault on Healthcare
Becky Brown, JD, SPHR – Supv. VP, MSA HR Capital
Kevin Haeberle, JD – Exec. VP, MSA HR Capital
www.IHStrategies.com Exclusive to Healthcare. Dedicated to People. SM
Securities offered through First Allied Securities, Inc., A Registered Broker Dealer, Member FINRA/SIPC.
2008 ASHHRA

1
In today’s session we will...
■ Broaden your understanding of the fundamental
shift occurring in the healthcare labor movement and
the need to take a new approach
■ Share how to assess and rate your hospital’s
current labor strategy and provide recommendations
on how to thrive by adopting a proactive labor
relations strategy
■ Touch on the substantial impact of new workforce
dynamics, due to rapidly approaching generational
shift today and beyond

2
But first...
A quick warm up...

3
Human Resource Leader’s View of
Healthcare’s Top Three Challenges*
*MSA HR Capital real-time survey at 2006 ASHHRA Booth
90% Managing the costs of keeping pay competitive
85% Creating a performance driven culture
75% Managing increasing benefit costs
67% Keeping an aging workforce motivated
62% Finding talented HR staff and leaders
58% Dealing with the shortage of specialty Physicians
51% Impacting CEO and Board Member decisions
22% Recruiting Gen Y employees
16% Preparing for a Union Attack

4
Today’s Healthcare Labor Environment:
A Storm Is Brewing
What has Changed? And, How Can You Help Your Organization
Stay Ahead of the Storm, Thriving and Achieving Your Goals

Mary-labor Relations 101 Started 30 minutes ago
Oh John, lighten up! Unions are a threat of the
past. Plus I’ve been to training a few years ago,
so I already know the do’s and don’ts and the
importance of positive employee relations.
Mary! We’re late for our labor
relations class. I hear we’ve got real
reason to be concerned about the
new face of union organizing.

6
Why cause for alarm now?
§ A fundamental shift is occurring in labor relations.
§ Positive employee relations is often no longer enough to
insulate an organization from possible union threat.
§ Two key factors contribute to this shift.
§ Unions are taking an external approach in unprecedented ways
in many instances to persuade not the employees, but all constituents
of the organization, patients, families, influential community members,
politicians, clergy, regulators, etc.
§ Reputation Attacks (Corporate Campaign Tactics)
§ Positioning labor movement as the “savior” of Healthcare
§ Unions are committed to passing legislation to circumvent
normal NLRB procedures in place to protect both employer and
employee rights.

7
Other indications of this fundamental shift...
ü Greater union emphasis on Healthcare and other service
sectors.
ü Healthcare industry specific campaigns placing far greater
emphasis on Southern market. Once viewed as an impenetrable
market by unions, now viewed as wide open potential for increase
membership and increased dues dollars.
ü New sophisticated marketing campaigns and techniques and
use of savvy public relations and marketing support.
ü Willingness to spend millions of dollars with no immediate
chance of recouping expenses for a greater purpose.
ü Heavy use of internet, gaining instant and broad access to
employees, particularly younger employees

8
What is the impetus for the fundamental shift in Labor’s
approach?
Union Representation
0%
5%
10%
15%
20%
25%
30%
35%
40%
1950 1960 1970 1980 1990 2000 2010
Union
Representation
Union Representation
0%
5%
10%
15%
20%
25%
30%
35%
40%
1950 1960 1970 1980 1990 2000 2010
Union
Representation

11
Value Care, Value Nurses: SEIU

12
NNOC/CNA Forges New Ground and strives to be
“An RN Voice for Direct Care Nurses”

15
Employee Free Choice Act
§ The Employee Free Choice Act will, if passed,
fundamentally change the labor environment as it has
been know for 72 years
§ The simple, and many times coerced, act of signing a
union card would likely become the primary legal
process for union representation.
§ Third party arbitrator would have the right to decide
contracts if the parties can’t come to a swift contract
agreement.
§ Potential fines, treble damages and other serious civil
penalties for administrative violations.

16
Importance of Understanding Organizational Culture in
Light of New Union Approach
§ All organizations have a work place culture based in large part on the work
value(s) which dominate the organization.
§ Healthcare organizations must seize the opportunity before passage of the
misleadingly titled Employee Free Choice Act (EFCA), to assess and
determine not only what their organizational culture is, but to raise awareness of
how this culture may contribute to heightened or lesser vulnerability to
unionization under EFCA’s card signing process, which would allow unions to
circumvent the NLRB secret ballot election process.

17
The correlation between your
organization’s employee relations
environment and union vulnerability
will be greatly diminished.
...so what can you do about it?
BOTTOM LINE:
In a Post-EFCA Labor Environment...

Assessing Your Hospital’s Labor
Relations Strategy: How Does it Rate?
6.5
7
4.5 8
??

19
Differentiation Between Just Surviving and Thriving
■ Financial Efficiency
■ Constant State of Readiness
■ Inefficient Use of Resources
■ Constant State of Uncertainty
■ Proactive
■ Normal Course of Business
■ Reactive
■ Event Specific Response
THRIVINGJUST SURVIVING

20
An organization would likely be characterized as “just
surviving” if....
■ Organization takes a reactive approach to leadership training on
preventive labor relations, i.e. training occurs only if visible union
activity is present and/or no formal labor relations policy or strategy is
in place.
■ Organization lacks comprehensive employee and leadership
development programs, i.e. any training and development is “ad hoc” in
response to a specific incident requiring an immediate response.
■ Organization, in an effort to cut costs or save dollars, ends up
duplicating efforts and therefore overestimates gaps in internal
resources or expertise and/or inefficiently uses internal and external
resources (i.e., penny wise, pound foolish).
■ Organization leaders and employees are often unsure of what
resources are available to them and/or what there role is in the
organization’s preventive labor strategy, leading to a constant state of
uncertainty and lack of preparedness

21
In contrast, organizations that are likely to “thrive”
regardless of any union efforts are those in which...
■ Organization takes a proactive approach to all aspects of
their labor relations strategy, i.e. routine annual training on
preventive labor relations, adoption, publication and
commitment to a union free philosophy.
■ Organization, as a normal course of business develops and
commits the resources necessary to retain a comprehensive
People Strategy complete with employee and leadership
development programs.
■ Organization approaches preventive labor relations activities
in an efficient, strategic manner, aimed at fiscal responsibility
and efficiency (i.e. an ounce of preventive is worth its weight in
gold)
■ Organization leaders are committed to operate in a constant
state of readiness relating to all labor relations and “people
plan” related issues.

Recommendations on How to Thrive by
adopting a Proactive Labor Relations
Strategy
10
10
10 10
10

23
THRIVING =
Constant State of Readiness

24
Just as Big Labor has recognized the need for a fundamental
shift in their approach to organizing efforts, in turn, healthcare
employers must similarly fundamentally shift our preparation
and view of labor relations.
This means employers MUST, as a matter of course, filter all
decisions through a labor relations “lens”
It is no longer adequate to rely only on
positive employee relations programs,
a more proactive approach woven
into the fabric of your organization’s
normal business practices.

25
How to Thrive In the Face of Big Labor’s Assault on Healthcare
KEY ELEMENTS OF A SUCESSFUL LABOR RELATIONS STRATEGY
■ Proactively look Ahead and Anticipate Future Challenges
■ Survey
■ Audit
■ Assess
■ Scripting/Role Playing
■ Checks and Balances
■ Accountability
■ Incorporate into everyday decision-making

26
Interactive Discussion with Attendees
Relating to Prior Three
Audience Response Question Slides

27
Impact of new workforce dynamics, due to
rapidly approaching generational shift today and beyond
Traditionalists
Baby Boomers
Generation X
Generation Y

28
Generation Y’s unique traits require that view labor relations through a different
lens than ever before...
Key Considerations:
■ Gen Y’ers are less likely to be loyal to an organization or manager.
■ Gen Y’ers may be flippant about decisions they make, increasing likelihood
they may succumb to union influence, including card signing because not
concerned with future or long-term consequences of actions.
■ Gen Y employees are accustomed to instant gratification, which would make
short term economic gains or promises of power and influence promised by
unions may be more attractive now than in past years.
■ Gen Y employees desire immediate feedback and recognition for their
contributions.
■ Many younger employees do not have historical knowledge of unions, strikes,
etc.
■ Political climate is such that many younger Americans are seeking change
from status quo. Translated to an employment environment this could lead to
employees seeking alternatives to existing management.

29
Where to you go from here? Take aways...
§ Go back and share what you’ve learned with your Senior
Leadership Team and engage in discussion and a candid
assessment of whether your organization’s current approach to
labor relations will put you in a position to thrive now and in the
future.
§ Use framework and recommendations
discussed this morning to begin to
reduce vulnerability by taking steps
to put your organization in a
constant state of readiness!

Thriving (Not Just Surviving) in the Face of Big Labor's Assault on Healthcare

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Thriving (Not Just Surviving) in the Face of Big Labor's Assault on Healthcare